Scandium enters MOU with Granges Powder

The most recent news release from Scandium Canada Ltd. on November 6, 2025, provides an update on the commercialization strategy for its patent-pending aluminum-scandium (Al-Sc) alloys. Key developments include:

• Memorandum of Understanding (MOU) with Gränges Powder Metallurgy (GPM): The companies will study the integration of Scandium Canada's exclusive AA535 and AA7075 scandium-modified alloys into GPM's product range. This aims to accelerate the adoption of lightweight structures in sectors like aerospace, automotive, and advanced manufacturing.
• Productique Québec Report: The company received a report from Productique Québec identifying 13 target applications for its alloys, including welding wire, aircraft ducts, and heat exchangers. This report validated the strong commercial potential and identified new promising uses beyond initial scope.
• Research Partnership with National Research Council Canada (NRC): Scandium Canada will collaborate with NRC's Additive Manufacturing Division to identify new commercial applications and pathways for innovative alloys. This is supported by Canada's Industrial Research Assistance Program (IRAP).
• International Patent Filing: An international patent application was filed under the Patent Cooperation Treaty (PCT) on September 17, 2025, for two exclusive alloys and their manufacturing method, developed in partnership with McMaster University.

This news is a routine positive development for Scandium Canada's "Scandium+" division, which focuses on the commercialization of its advanced aluminum-scandium alloys.

• Positive Aspects:
  • Validation and Market Interest: The MOU with Gränges Powder Metallurgy demonstrates external industry interest in the company's proprietary alloys. This is a crucial step for a company in the commercialization phase, as it provides a pathway for potential future sales and adoption.
  • Broadening Application Scope: The Productique Québec report, identifying 13 target applications, validates the commercial potential and expands the perceived market for the alloys beyond 3D printing, which was a primary initial focus.
  • Strengthened R&D and IP: The research partnership with NRC Canada, supported by IRAP, is a positive development for continued innovation and identification of new uses. The international patent filing under PCT is critical for protecting the company's intellectual property globally, which is a key asset for its value-added division.
• Neutral Aspects:
  • Early Stage Commercialization: The MOU is for a "study integration," not a firm purchase order or off-take agreement. This means there is no immediate revenue impact, and significant further steps are required before commercial sales can be realized.
  • Expected Development: These activities (MOU, market studies, patent filings, research partnerships) are logical and necessary steps in a commercialization strategy. They align with previously communicated goals for the Scandium+ division (established November 2024). While positive, they do not exceed prior expectations to a degree that would be considered a game-changer or have an immediate material impact on the company's financial standing or stock price beyond routine positive sentiment.

In summary, the news indicates steady progress in executing the commercialization strategy for Scandium Canada's alloys. It confirms market interest and strengthens the intellectual property and R&D pipeline but does not represent an immediate revenue-generating event.

Scandium Canada Ltd. (TSX-V: SCD) is a Canadian critical minerals company focused on the development of scandium and rare earth elements. The company pursues a dual strategy: the responsible exploitation of its primary Crater Lake project and the development and commercialization of high-performance aluminum-scandium (Al-Sc) alloys through its "Scandium+" division.

Flagship Project: Crater Lake - Location: Nunavik, Quebec, approximately 230 km northeast of Schefferville. - Significance: Identified as one of the world's most important primary sources of scandium, also containing valuable rare earth elements (REEs) such as dysprosium, lanthanum, neodymium, praseodymium, and terbium. - Development Status: - Resource Estimate: A new NI 43-101 Mineral Resource Estimate (effective April 2, 2025, filed by May 16, 2025) significantly increased both Indicated and Inferred resources in the TG Zone, confirming its continuity and expansion to the south. - Metallurgical Testing: A 500-kilogram metallurgical pilot test completed in May 2025 by SGS Canada Inc. yielded 99.5% scandium oxide purity and 77.3% overall scandium recovery (ore to final product). This is projected to increase annual scandium oxide production to 91 tpa (from 87 tpa in the 2022 PEA) while reducing concentrate transport by 27,000 tonnes annually. - Pre-Feasibility Study (PFS): The company is working towards completing a PFS by June 2026. - Infrastructure: Evaluating different access road scenarios, with a final decision expected by the end of 2025. Overburden thickness work completed in June 2025. - Community Engagement: Signed a Predevelopment Agreement with the Naskapi Nation of Kawawachikamach (April 22, 2024), which later invested in the company, reflecting a commitment to inclusive development.

Scandium+ Division - Focus: Pre-commercialization and market development of patent-pending aluminum-scandium alloys, primarily for additive manufacturing (3D printing). - Technology: Proprietary AA535 and AA7075 alloys modified with scandium and other metals, designed to eliminate cracking in high-strength aluminum alloys, offer reduced scandium content for cost-effectiveness, provide a broad processing window, and achieve desirable mechanical properties with minimized defect density. - Partnerships: Developed with McMaster University, Productique Québec (for market outreach and application assessment), and National Research Council Canada (for identifying new commercial applications). - Intellectual Property: An international patent application was filed under the Patent Cooperation Treaty (PCT) on September 17, 2025, for two exclusive alloys and their manufacturing method. - Goal: Generate revenues and establish a healthy scandium market in parallel with the Crater Lake project development, targeting sectors like aerospace, automotive, and advanced manufacturing.